North Carolina Down Payment Assistance Programs

Online Payments - The North Carolina Housing Finance Agency got two amazing programs for First Time Home Buyers. These programs would be the Down Payment Assistance System as well as the Mortgage Credit Certificate.

You buy a home and December 1, 2009 and if you qualify for one of the plans, you could also be eligible for the $8,000 tax credit just enacted into law.

First, who's a First Time Home Buyer? There is a First Time Home Buyer someone who has not owned a home in the past three years. Here is precisely the same qualifying definition.

A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with average and low incomes. All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step further. An MCC “reduces your tax liability depending on a share of the mortgage interest that you pay.

In case you are eligible for the MCC, you'll be able to claim 20% of the interest you pay as a credit on your federal income taxes on your own mortgage. It is possible to save as much as .

You'll be able to join this with the $8,000 tax credit should you qualify for 2009, for the MCC. This would reduce a purchaser's tax liability .

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and every other man expected to reside in the dwelling who is 18 years old or older.”

House price limitations that apply in Durham Orange and Chatham Counties and the income are given below.

MCC Income Limitations 1 Individual $61,500 2 Individuals $61,500 3 Men $70,500 4 Persons $70,500

MCC Sales Price Limits New Home $220,000 Existing Dwelling $210,000

Home buyers that need help with their deposit and closing prices may be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The customer only has to pay $1,000 of their own funds and the load would pay around .

This program has more rigorous income limitations than the MCC program summarized above. Like the MCC program, it can be utilized in combination with the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The down payment assistance, nonetheless, can not be used in conjunction with all the MCC. This is an either or situation.

House price limitations that apply in Durham, Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Individuals $45,650 3 Individuals $51,350 4 Men $57,050

Down Payment Assistance Sales Price Limits New Home $210,000 Existing House $210,000